For each of the utility functions below derive the own-price demand functions for x₁ and x₂. The priceof x₁ and x2 are p₁ and på respectively. The consumer has income from endowment (3, 3).(a) u(x₁, x₂) = min{2x1, x₂}(b) u(x1, x₂) = x² + x1²2(c) u(x₁, x₂) = ln(x₁) + In(x₂)(d) u(x1, X2) = 2x1+x2(e) u(x1, x₂) = 10x0.5 + x2(f) u(x₁, x₂) = x₁ + 10x2.5

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For each of the utility functions below derive the own-price demand functions for x₁ and x2. The price of x₁ and x2 are p₁ and p2 respectively. The consumer has income from endowment (3, 3). (a) u(x₁, x₂) = min{2x1, x₂} (b) u(x1, x₂) = x² + x²2 (c) u(x₁, x₂) = ln(x₁) + In(x₂)

For each of the utility functions below derive the own-price demand functions for x₁ and x2. The price of x₁ and x2 are p₁ and p2 respectively. The consumer has income from endowment (3, 3). (a) u(x₁, x₂) = min{2x1, x₂} (b) u(x1, x₂) = x² + x²2 (c) u(x₁, x₂) = ln(x₁) + In(x₂)

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

For each of the utility functions below derive the own-price demand functions for x₁ and x₂. The price
of x₁ and x2 are p₁ and på respectively. The consumer has income from endowment (3, 3).
(a) u(x₁, x₂) = min{2x1, x₂}
(b) u(x1, x₂) = x² + x1²2
(c) u(x₁, x₂) = ln(x₁) + In(x₂)
(d) u(x1, X2) = 2x1+x2
(e) u(x1, x₂) = 10x0.5 + x2
(f) u(x₁, x₂) = x₁ + 10x2.5

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